Why Digital Dominance is more important than ever!
The benchmark results of the Digital Dominance Benchmark 2020 show that pureplay eCommerce brands become even stronger followed by retailers with a strong developed omnichannel or digital first strategy. The customer landscape changed dramatically in the last years. We saw retail “going discount” with Action as a prime example but also the pureplay eCommerce taking over with bol.com and Coolblue and we saw the traditional retailers are becoming true omnichannel retailers like H&M and Zara.
The rising generation of younger, tech-savvy Millennial consumers wants low prices coupled with next-day delivery, convenience and seamless omnichannel experiences connecting in-store and online shopping. Direct-to-consumer digital brands emerged and extended from clicks to bricks, raising the bar for in-store shopping experiences. Now, as Generation Z enters the market and begins to spend, we are seeing that they are bringing again differentiated shopping expectations than that of Millennials.
Knowing and understanding the customer is the only way brands will be able to stay in the game. Traditional models no longer work as their supply chains are too slow and too disconnected with personalized experiences modern shoppers seek. Looking forward, retailers and brands need to keep pace with consumers’ wants and needs. Even amidst economic uncertainty, those who are able to match their product offerings, sustainability practices and seamless, digitized experiences to customer expectations will have the greatest opportunity to capture market share while minimizing costs.
In this era, the digital dominance of brands and the consumer experience are more important than ever.
Figure 1. The average score and dispersion per industry 2018/2019 in The Netherlands
Winners & Losers per industry
Per industry, the difference between the highest and lowest scoring brand (the dispersion) and the average scores are provided. As can be seen in figure 1, the dispersion per industry differs significantly. One would expect that the dispersion becomes smaller over time. However, this is not the case for every industry. This year multiple industries demonstrated an increase in their digital performance compared to last year’s benchmark. Figure 2 visualizes the dispersion and average score of the total Digital Dominance Index per industry compared to the last year.
The most remarkable insights are:
The difference between the highest scoring brand and the lowest scoring brand is substantial.
The Airlines industry has the highest average score and the Food & Beverages industry has the lowest average score;
The eCommerce industry has the highest scoring brand. The highest scoring brand in the Kitchen Appliances industry scores slightly above the average of all industries.
Fintech, Food & Beverages and Pharmaceuticals highest scoring brand scores slightly below the average of all industries
If you want to get into the details on how your brand performs and how to lead the Digital battle?